FDD Items 3 & 4 · 2022 filing

Renew Crew litigation history

What Renew Crew disclosed about lawsuits, arbitrations and bankruptcy in the 2022 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 8; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2022; Disclosures cover the prior ten years

Extracted from the 2022 Franchise Disclosure Document

Item 3: litigation

360 Painting and CEO Paul Flick involved in 5 litigation matters. (1) 360 Painting LLC v. DeGregorio LLC (N.D. Ill. 2021): Breach of franchise agreement, personal guaranty, and fraud claims settled for $21,000 on 12/24/2021. (2) Deborah Carreno v. 360 Painting (S.D. Cal. 2019): Breach of implied covenant, misrepresentation, and unfair practices claims settled for $57,500 in 11/2021. (3) Leslie Owens Brown v. 360 Painting Inc. and Paul Flick (Maryland 2013): Unregistered franchise claim settled for $46,000 via consent order 10/10/2013. (4) MMG-360 LLC v. Paul Flick et al. (Ohio 2011): Fraud and breach of contract settled in 7/2013. (5) Maryland Securities Commissioner administrative proceeding (Case 2015-0477) initiated 2/23/2016 regarding franchise activities. No pending litigation or litigation against franchisees in last fiscal year.

Item 3 (litigation) · 8 matters disclosed

Litigation cases

The franchisor

Concluded (1)

In The Matter of the Commissioner of Financial Protection and Innovation v. 360 Painting, LLC, Pro-Lift Doors Franchise, LLC, Maid Right, LLC, Handyman Pro, LLC, Kitchen Wise, LLC, Renew Crew, LLC, Rubbish Works, LLC, and Paul Flick
concluded
Government or regulatory action · filed 2021-11-19 · California Department of Financial Protection and Innovation · File Origination ID 33649, 26267, 110487, 293487, 292987, 339827, 99696, 365318, 403947
“In The Matter of the Commissioner of Financial Protection and Innovation v. 360 Painting, LLC, Pro-Lift Doors Franchise, LLC, Maid Right, LLC, Handyman Pro, LLC, Kitchen Wise, LLC, Renew Crew, LLC, Rubbish Works, LLC, and Paul Flick, an individual,”Page 14 of the 2022 FDD, Item 3
Outcome: “to pay penalties of $72,500 and costs of $10,500 to the Commissioner; (3) to disgorge all initial franchise fees paid by California franchisees to defendant 360 Painting, LLC and refrain from enforcing or collecting judgments against California franchisees;”

Parent, affiliates, master franchisor and subfranchisor

Concluded (7)

360 Painting, LLC v. The DeGregorio, LLC, et al.
settled
360 Painting, LLC (our affiliate) · filed 2021-08-27 · U.S. District Court, Northern District of Illinois, Eastern Division · 1:21-cv-04577
“… (U.S. N.D. Ill., East. Div., Case # 1:21-cv-04577). Filing date: August 27, 2021. 360 Painting, LLC filed a Complaint against former franchisee Greg DeGregorio and several associated corporate entities based”Page 12 of the 2022 FDD, Item 3
Outcome: “pursuant to which 360 Painting paid $21,000. An agreed dismissal order requesting a dismissal of all claims with prejudice was entered by the Court on January 11, 2022.”
Commonwealth of Virginia, ex. rel. State Corporation Commission v. 360 Painting, LLC
settled
Government or regulatory action · 360 Painting, LLC (our affiliate) · filed 2020 · Virginia State Corporation Commission · SEC-2020-00055
“… No. SEC-2020-00055, investigation by the Virginia State Corporation Commission.”Page 14 of the 2022 FDD, Item 3
Outcome: “360 Painting agreed to pay $10,000 in monetary penalties, $1,000 to defray costs of investigation, and agreed not to violate the Act in the future.”
In the Matter of 360 Painting, LLC
concluded
Government or regulatory action · 360 Painting, LLC (our affiliate) · filed 2020 · Illinois Attorney General · 20-AVC-F001
“… No. 20-AVC-F001, investigation by Illinois Attorney General’s Office. In January 2020, the Illinois Attorney General’s Office began an investigation of potential violations of the Illinois Franchise Disclosure Act by 360”Page 14 of the 2022 FDD, Item 3
Outcome: “make a $6,000 payment to the state, disclose the AVC in its disclosure document, and comply with the Illinois Franchise Disclosure Act in the future.”
Deborah Carreno v. 360 Painting, LLC, et al.
settled
Brought by a franchisee · 360 Painting, LLC (our affiliate) · filed 2019-11-22 · U.S. District Court, Southern District of California · 19cv2239-LAB-BGS
“… (U.S. District Court, Southern District of California, Case No. 19cv2239-LAB-BGS).”Page 12 of the 2022 FDD, Item 3
Outcome: “pursuant to which 360 Painting agreed to pay Plaintiff $57,500. Both parties claims were dismissed with prejudice by Order dated November 18, 2021.” (page 13)
In the Matter of 360 Painting, LLC f.k.a. 360 Painting, Inc., and Paul Flick
concluded
Government or regulatory action · 360 Painting, LLC (our affiliate) and Paul Flick (CEO) · filed 2016-02-23 · Securities Commissioner of Maryland · 2015-0477
“… Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2015-0477, as modified by Order Modifying Consent Order dated January 4, 2017.”Page 13 of the 2022 FDD, Item 3
Leslie Owens Brown, et al v. 360 Painting Inc. and Paul Flick
concluded
Brought by a franchisee · 360 Painting Inc. (our affiliate) and Paul Flick (CEO) · filed 2013 · Circuit Court for Prince George's County, Maryland · CAL13-14582
“… (Case # CAL13-14582, Circuit Court for Prince George’s County, Maryland).”Page 13 of the 2022 FDD, Item 3
Outcome: “wherein 360 Painting agreed to pay Leslie Brown $46,000 (the franchise fee, costs, and attorney’s fees) without conceding the allegations in the complaint.”
MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al.
settled
360 Painting LLC and related entities (affiliates); Paul Flick (CEO) · filed 2011-04-06 · Court of Common Pleas, Cuyahoga County, Ohio · CV-11-752725
“MMG-360 LLC, et al. v. Paul Flick, Home Service Franchising, Inc., 360 Painting LLC, Maintenance Made Simple LLC, et al.”Page 13 of the 2022 FDD, Item 3
Outcome: “The parties ultimately settled in July 2013. Litigation Against Franchisees in Last Fiscal Year None. Governmental Actions In the Matter of 360 Painting, LLC f.k.a. 360 Painting, Inc., and Paul Flick, Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2015-0477, as modified by Order Modifying Consent Order dated January 4, 2017.”

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosure signals that moved the score

How this shows up in the verdict

8 litigation matters (affiliate/CEO) including 4 governmental actions

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

Were you, or anyone you know in the system, party to a dispute with the franchisor?
Was it resolved by settlement, arbitration or a court, and on what terms?
Has the number of disputes gone up or down since you signed?

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